Leverage and bottlenecks in modern agriculture

Technology is emerging as a powerful lever to help Vietnamese agriculture improve productivity, quality, and competitiveness, while also empowering farmers to become knowledge-based stakeholders. However, despite a number of production models actively embracing scientific and technological innovations, many research achievements still lie dormant in labs due to an absence of effective mechanisms for transfer, risk-sharing, and a suitable legal corridor. Without timely resolution of institutional, financial, and linkage bottlenecks, technology cannot fully realise its value.

Part 1: Taking control of the fields through technology

The application of high technology is driving significant leaps in Vietnamese agriculture—from impressive GRDP growth to the emergence of a new class of farmers skilled in management, business, and market access. However, this development will not be sustainable if farmers merely play a passive operational role, rather than becoming the true masters of knowledge and the value chain.

Solving social challenges before maximising profit

The adoption of high-tech solutions in agriculture has triggered breakthroughs and a renewed image for the sector. Technologies such as the Internet of Things (IoT), Artificial Intelligence (AI), Big Data, and robotics are being deployed to optimise every stage—from planting and care to harvesting and distribution—helping farmers manage crop cycles more effectively, minimise risks, and increase income.

The project "Smart agriculture for future generations" in Moc Chau serves as a clear example of applying high-tech to agriculture.

The initiative is jointly implemented by the Food and Agriculture Organisation (FAO) and the Fruit and Vegetable Research Institute (under the Viet Nam Academy of Agricultural Sciences), with active participation from Hachi Joint Stock Company in designing and deploying smart greenhouse systems.

The project has supported the renovation and upgrading of more than 35,000m² of greenhouses in Moc Chau, enabling 34 farming households to access modern agricultural technologies, significantly transforming their livelihoods.

Vu Van Hieu, a young farmer from Moc Chau District in Son La Province, had previously struggled due to erratic weather and market volatility. Through participating in the high-tech project, he invested in building a 1,836m² smart greenhouse for cultivating bell peppers and Palermo peppers.

In the first harvest alone, his family produced 18 tonnes of peppers, generating a profit of around 500 million VND (19,073 USD) in just three months. Building on this initial success, Hieu expanded his cultivation area and established the Tan Lap High-Tech Cooperative, gathering eight households for joint production and distribution.

This result demonstrates how high-tech is creating clear transformations in upland agriculture—from production methods to mindset—laying the foundation for a sustainable and modern agricultural sector.

In Thanh Hoa Province, Lam Son Sugar Joint Stock Company and farmers in Tho Xuan District have become a shining example of proactively integrating science and technology into agricultural production.

With a raw material area of around 9,500 hectares, since 2022 the company has partnered with research and technology transfer units to deploy the “Smart Eye” system—an integrated solution using AI, drones, and IoT. This system monitors soil moisture, manages irrigation and nutrients, and detects early signs of pests and diseases on each plot.

Additionally, the company has adopted GIS-based crop management maps combined with AI to analyse cultivation processes and issue early weather warnings for each sugarcane-growing area.

Technicians no longer need to be physically present in the fields to closely monitor harvesting, transport, and crop development across the entire plantation. Thanks to these systematic efforts, the yield and quality of sugarcane have increased significantly. In 2024, production reached 563,000 tonnes, with quality improving by 10–15%.

As of April 2025, production continued to rise to 660,000 tonnes. The company aims to expand its sugarcane cultivation area to 10,000 hectares by 2026, with expected output of 750,000–800,000 tonnes.

Le Ba Chieu, Deputy General Director in charge of raw materials at Lam Son Sugar, said that thanks to scientific and technological application, the plantation area expanded and yields improved, boosting farmers’ incomes—each household could lease 5–10 hectares and earn over 1 billion VND (38,145 USD) annually.

The company has synchronised mechanisation—from sugarcane planting and soil preparation to fertiliser application and pesticide spraying using drones, and finally to harvesting.

Currently, the company owns nine harvesters, each valued at 10 billion VND (381,452 USD), capable of harvesting around 250–300 tonnes of sugarcane per day, equivalent to the work of 200 labourers.

Dao Van Duong (Hamlet 3, Tho Lam Commune, Tho Xuan District), a farmer with nearly 30 years’ experience in sugarcane cultivation, shared that thanks to support from the company—such as interest-free loans, technical guidance, and full mechanisation—he confidently accumulated land and expanded his sugarcane area by an additional 14 hectares. After deducting costs, his family earns about 500 million VND (19,073 USD) annually.

In Lam Dong Province, the closed-loop hydroponic vegetable cultivation model within greenhouses operated by Phong Thuy Agricultural Production and Trading Co., Ltd. (Duc Trong District) has been widely replicated across farms in the region.

With over 100 hectares under cultivation, including 30 hectares using high-tech, this model enables businesses and farmers to significantly save water, reduce post-harvest losses from 30% to below 10%, and shorten the production cycle by 20 days to a month. The vegetables are almost entirely grown without chemical pesticides.

Clearly, rather than competing fiercely on price or product quality as in conventional market logic, the high-tech model is shifting towards a people-centric approach—solving social issues before pursuing profit optimisation.

Empowering farmers to own the value chain

Despite innovative models placing farmers at the heart of the value chain, many high-tech agriculture initiatives are gradually leaving them behind.

Pham Duc Nghiem, Deputy Director of the Department of Start-ups and Technological Enterprises (Ministry of Science and Technology), stated that in reality, many smart agriculture projects are developing in a “closed” manner, suited only to large enterprises.

These companies invest in greenhouses, net houses, and automation from planting to harvesting without requiring farmers’ participation. Such models typically involve very high capital investment and demand modern management skills, making them inaccessible to most farmers in terms of both finance and technology.

This approach runs counter to the spirit of agricultural and rural industrialisation and modernisation, which regards farmers as central actors—thus hindering the widespread and sustainable spread of high-tech agriculture.

Associate Professor Dr Nguyen Ngoc Son of the National Assembly's Committee on Science, Technology and Environment noted that turning farmers into “passive operators” who neither control knowledge nor capture added value leads to social disparities and unsustainable development.

Farmers must become central to the transformation process. To achieve this, they must be elevated into knowledge owners—not just trained in techniques, but also in digital technology, market access, and farm business management.

On-site practical training programmes involving scientists and businesses are essential. High-tech models must establish equitable cooperation mechanisms, where farmers contribute land and labour, co-operate in operations, and share benefits with enterprises. Modern cooperatives and tech-enabled producer groups should be given priority access to land, credit, and technical support.

Furthermore, the system for transferring science and technology must be accessible and suitable for smallholder farming realities, facilitated through commune- and district-level agricultural service centres. “Farmers cannot merely be labourers for technology. They must co-create and reap sustainable benefits. Only when farmers truly take ownership can digital transformation be widespread,” Associate Professor Dr Nguyen Ngoc Son emphasised.

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